Coinbase’s analytics program, Coinbase Tracer, provides ICE with user data, including “historical geo-tracking data” and transaction history, according to a document obtained by watchdog group Tech Inquiry and first reported by The Intercept.
The ICE contract is part of a deal Coinbase signed last summer with U.S. government agencies and the document suggests Coinbase Tracer can track data related to bitcoin, ethereum, the stablecoin tether and other cryptocurrencies, as well as all tokens on the ethereum network—known as ERC-20 tokens.
The Coinbase Tracer software, which analyses millions of blockchain-based transactions, can also perform “transaction demixing, and “shielded transaction analysis.” Coinbase markets the software as a way to “investigate illicit activities including money laundering and terrorist financing” and suggests Tracer can “link activities to real-world entities.”
However, Coinbase denied that the information provided by the analytics software is the exchange’s customer data.
“We want to make this incredibly clear: Coinbase does not sell proprietary customer data,” the crypto exchange posted to Twitter.
“Our first concern has been and always will be providing the safest and most secure crypto experience to our users. Our Coinbase Tracer tools are designed to support compliance and help investigate financial crimes like money laundering and terrorist financing. Coinbase Tracer sources its information from public sources and does not make use of Coinbase user data. Ever.”
Coinbase stock has crashed dramatically over the last year as the company battles falling bitcoin, ethereum and cryptocurrency prices, regulatory headwinds and the collapse of major coins.